Annual sales growth formula

Though tracking sales metrics isn’t necessarily the most glamorous part of working in sales, having a solid understanding of how the deals you close impact your company’s bottom line and future growth is a critical part of the job.

For companies that are focused on growing and scaling, an essential metric to keep an eye on is the sales growth rate.

Understanding the sales growth rate is a critical metric that empowers companies to make data-informed decisions.

If this rate decreases compared to prior periods, that can be an indication that the sales team needs to take a different approach to drive revenue growth. Conversely, a high sales growth rate is often seen as a good sign for company stakeholders.

Now that we understand what sales growth rate tells us, let’s review how to calculate it.

Sales Growth Rate Formula

To calculate the sales growth rate for your business, you’ll need to know the net sales value of the initial period and the net sales value of the current period.

These values should be easy to find on an income statement. Once you have these values, you ca

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